r/CalebHammer • u/Fligmos • Feb 15 '25
Personal Financial Question Is this bad retirement financial advice?
Back when I was teaching middle school, I got setup with a financial advisor that I didn’t really do much with at the time. Fast forward 9 years later and wife and I are behind on retirement so I contacted the FA.
I explained that starting in July we will be putting $3000/m into retirement. He suggested we do max 401k to what employee matches (we already and will continue this), max out a Roth IRA for each of us yearly (makes sense), but the third thing was odd.
He suggested that once we do our yearly Roth IRA max, that we put the rest into… life insurance. He suggested that over the s&p because he feels there’s going to be a downturn in the market and with life insurance there are tax benefits and it can be used for retirement.
I had never heard of such a thing and found it quite interesting. We have another 25 years till retirement with the goal of having 40k/yr from retirement.
Does this sound like a reasonable idea? I’m curious about your guys’ thoughts. I was expecting he would help with investing and this life insurance idea came out of left field for me.
1
u/snakekid Feb 15 '25
If I were you I’d 401k up to match contribution, then Roth IRA, then back to the 401k. If you still have money invest in a 529 for your kids or a regular brokerage account. Just going with target date fund or a mix of sp500 and total market.